To The Moon

Latest institutional positions: These Chinese stocks were abandoned

The 13F report, is called 13Filings or SEC Form 13F, refers to the quarterly position reports disclosed by U.S. institutional investors with more than $100 million in equity assets under management.

The SEC requires institutions to publish 13F reports within 45 days of the end of each quarter.

Whenever 13F is disclosed, financial media and investors will study and research it carefully, hoping to dig out investment opportunities from the changes in institutional positions.

But such expectations often fail, as different institutions may treat the same stock in a totally opposed manner.

According to the disclosed institutional 13F data in the recent time, Bridgewater Associates, the world's largest hedge fund, liquidated its position in semiconductors and Chinese stocks in the Q4 of last year. AMD, Micron, Nvidia were liquidated; at the same time, the Chinese stocks including Pinduoduo, Baidu, Beigene  held by the fund fell by more than 20%:

It is clear that Bridgewater is bearish on semiconductors and Chinese stocks, reducing its 9 holdings of its top 10 holdings and being bearish on the U.S. stock market. What’s more, from the perspective of semiconductors, Chinese stocks and the U.S. stock market trend in Q1, Bridgewater sold at the low point.

BlackRock

BlackRock, one of the largest asset management groups in the world with a market value of over $3 trillion in positions, increased its holdings in U.S. stocks across the board in Q4 of last year.

However, as for the Chinese stocks, BlackRock increased its holdings of Pinduoduo and Bilibili, but then significantly reduced its holdings of Li Auto and XPeng Automotive, showing a sharp divergence in attitude towards Chinese stocks. 

In the field of semiconductors, BlackRock went against Bridgewate, choosing to add to its holdings with lower entry price in industry.

Goldman Sachs

 Goldman Sachs increased its holdings in Amazon and Google, and slightly reduced its holdings in Apple and Microsoft among the top 10 holdings:

As for Chinese stocks, Goldman Sachs reduced its holdings in Alibaba (13%), ZTO Express (26%), Baidu (18%), JD (28%) and Nio(57%), but increased its holdings in TSM (10%), Pinduoduo (39%) and IQiyi (25%).

While it appears that Goldman Sachs has a split position in Chinese stocks, Goldman Sachs increased its holdings in the China Overseas Internet ETF by 41% in Q4, indicating that Goldman Sachs is generally bullish on Chinese stocks.

In contrast to Goldman Sachs’ reduction of its holdings in Alibaba, JPMorgan Chase increased its holdings by 26% in Q4 of last year, also increasing its holdings in JD by 6% as well as the China Overseas Internet ETF (KWEB) by a massive 210% withincreasing its holdings in the KWEB call option by 10%.

It’s considered that JPMorgan is strongly bullish on Chinese stocks now.

Although there is a huge contrast in the investment of institutions on Chinese stocks, one thing is the consensus that is the overall position is small. For instance, as for Bilibili, although BlackRock largely increased nearly 600% in Q4, the overall market value of holdings is only $ 40 million. It’s almost meaningless to investors to talk about changes in holdings without consideration of the position.

However, BlackRock reduced its holdings of 19.36 million shares of XPeng and 26.88 million shares of Li Auto by a large amount,which nearly liquidated its position; Goldman Sachs significantly reduced its holdings of Nio. It deserves investors' attention that the new energy auto sector was abandoned by institutions.

$Alibaba(BABA)$ $JD.com(JD)$ $Bilibili Inc.(BILI)$  $XPeng Inc.(XPEV)$  $Li Auto(LI)$  $NIO Inc.(NIO)$  $CSI China Internet ETF(KWEB)$ $Pinduoduo Inc.(PDD)$ $Taiwan Semiconductor Manufacturing(TSM)$ $iQiyi Inc.(IQ)$ $Alphabet(GOOG)$  $Amazon.com(AMZN)$